TCJA Sunset Renewal?

1,082 Views | 4 Replies | Last: 9 mo ago by Fitch
Jason_Roofer
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Does anyone have any information on this? Is this expected to be made permanent? Has there been any movement on this? I tried to do some research but it seems most info is from last year. Any ideas?
Troglodyte
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AG
Its expected that they will be renewed or even lowered. However, its congress, so all bets are off. Republicans have to do it through reconciliation, so I don't think they can make them permanent. I think they can only go through the budget which is 10 years.
Pinochet
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The holdup right now is that the Republicans are trying to make it permanent through the budget reconciliation process. The only way to do that with the budget window rules is to score legislation based on a current policy baseline. That ignores the sunsets and assumes everything is permanent as a starting point, so making it permanent has zero cost. That's the plan, but it has to get through the parliamentarian, which is not very likely. This move has been tried a few times with this parliamentarian and she has killed it every time.
Pinochet
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Update from yesterday is that there is talk of disallowing deductions for state and local tax at the corporate level to pay for things in a reconciliation bill. It would raise around $220 billion in their scoring model, but that one will rightly get a ton of pushback from a bunch of different industry groups.
Fitch
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AG
The State and Local Taxes update (basically rolling back the removal of deductions from the 2017 TCJA) was a major element for representatives from states with high income or local taxes. It would be a significant departure from earlier posturing if they went that way.

Also in the news, and probably on a related note to the above, is the White House considering allowing the $609,351 and above federal income tax rate to revert from current 37% back to it's pre-2017 rate of 39.6%, i.e. basically not renew that one piece of the TCJA to help offset the costs of no tax on tips, etc.

Of the two, the latter seems like it would be more palatable for politicians.
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